Finances - Rumour

[Super_Ally 0]

Velicka will go down tonight for talks. It's a year long loan that wil save the club around �£500,000 in wages.

 

I'm told they had a meeting with the bank yday at which they wree told to step on the gas in terms of exits.

 

Murray, Bain, Smith and all met at MP today - the situation is still VERY serious.

 

They are trying to rake in as much as they can from the fringe players to avoid have to punt a gem.

 

Watch for Beasley to be next.

 

I am told, effectively, that the bank are running the show. They have refused to sanction any new contracts - even the Israeli boy can't get a deal.

 

On the plus side we might get rid of Beasley.

Edited August 14, 2009 by Super_Ally

[UCF2008 0]

With the players who've left this summer, we've brought in close to �£2m and slashed the wage bill by �£80-100 grand a week (conservative estimate). This combined with the CL money should surely be enough to satisfy the bank manager.

[Super_Ally 0]

I dunno enough about the finances tbh mate. Mind you, outwith the club who does?

 

A response to the OP I saw elsewhere made a good point though.

 

How can the bank be running the show? Would be like you or me having an overdraft and the bank telling you to sell your tv.

 

Surely the idea of the bank calling the shots is therefore nonsense.

[Frankie 8,150]

The club (and parent company) finances are obviously an ongoing issue but I don't think the situation is quite as murky as people make it to be.

[26th of foot 5,832]

I believe the current situation goes back several years to SDM's two year sabbatical; remember John McClelland took over as club Chairman. In 2003, the club debt was established as being in excess of �£50million, and climbing. The Murray Group underwrote a �£15million Revolving Credit Facility, our owner took the 1% placement fee.

 

Essentially, the club has been run with the support of the Revolving Credit Facility ever since. Last year's August spend of �£10million took us over the �£15million limit, triggering greater interest on the debt. With the retail sold off to JJB, miniscule TV/Media rights, our main source of income is season ticket sales. By December, marginal income is the norm, thus the Bank demanded Rangers make a bigger contribution to service the debt and the club hierarchy announced the firesale.

 

If Arsenal do what Dynamo should have, then Rangers are guaranteed another �£2million from Champions League TV rights as the sole Scottish participant. This may steady a still rocking ship; however, such a position of weakness will ensure bids for McGregor, Boogie, Boyd, .......etc will be accepted, particularly in the last week of the transfer window.

 

Reference the Revolving Credit Facility, Rangers must get the amount well below the �£15million level, because as the season progresses, we will be drawing on the residual to keep the club functioning. I suspect the Bank are very much running the club.

[Bluedell 5,329]

How can the bank be running the show? Would be like you or me having an overdraft and the bank telling you to sell your tv.

 

Surely the idea of the bank calling the shots is therefore nonsense.

I don't know if you recall, but I told you back in May that the bank were in, helping to run things.

 

However since then, we have secured CL football, lowered the wagebill and Got in a little transfer cash, removing the immediate requirement for monitoring, I would have thought. If they are still there then it shows little confidence in the current people running the show.

[Bluedell 5,329]

Essentially, the club has been run with the support of the Revolving Credit Facility ever since. Last year's August spend of �£10million took us over the �£15million limit, triggering greater interest on the debt. With the retail sold off to JJB, miniscule TV/Media rights, our main source of income is season ticket sales. By December, marginal income is the norm, thus the Bank demanded Rangers make a bigger contribution to service the debt and the club hierarchy announced the firesale.

I don't believe that last August's spend did take us over the �£15m limit in itself. However we must have been very close around March/April this year.

 

On the retail being "sold off", it hasn't affect our net income.

[Bluedell 5,329]

On the OP, I now see it was made by Barrybaldy on FF, so that adds a lot of credibility to it.

[Zappa 0]

If Arsenal do what Dynamo should have, then Rangers are guaranteed another �£2million from Champions League TV rights as the sole Scottish participant. This may steady a still rocking ship; however, such a position of weakness will ensure bids for McGregor, Boogie, Boyd, .......etc will be accepted, particularly in the last week of the transfer window.

I'd imagine that Boogie won't be sold unless it's for over �£5m, but the closer it gets to Sept 01 the less likely it is that we'll sell him AT ALL. Also, if Boogie were sold it would need to be on the basis that we get all the money immediately, since we'll need to replace him & a small deposit of 10-20% isn't going to cover that. Selling Boyd would be a major mistake at this point as we won't get anywhere near what he's actually worth. We'd be risking regaining the SPL title for the sake of about �£2m maybe �£2.5m tops due to the length of time left on his contract. McGregor is a totally different story. If we get a good offer for him he could well be offski.

[John Barr 0]

On the plus side we might get rid of Beasley.

 

With all due respect to you SA(and i DO respect you and agree with most of your comments), i think your fingers not quite on the button on this one and i for one don't believe it's as bad as you say.

Beasley can go anytime though. I'm skint too but i'll pay his taxi fare to the airport.

Edited August 14, 2009 by John Barr